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Kfc Situation Analysis

Brand loyalty and the unique taste of KFC"S product combined with ideal locations kept the customers returning for more.
             Competition across the board can be a threat to any company. New products and innovations are likely to draw consumer attention, so it is imperative that each company stay focused on developing and reinventing their menus. KFC attempted to liven their menu with the addition of the chicken sandwich, but it was not soon enough. McDonald's had already penetrated and captured the market with the introduction of the McChicken sandwich. Now the top sellers of chicken sandwiches are hamburger joints.
             KFC has the opportunity to consume an even greater share of the market with possible product line expansion and franchise availability. Offering a wider variety of products while still maintaining the original favorites will allow the possibility of new customers without neglecting those loyal to their original recipe. Franchises that adhere to the value system would allow possible increases in revenue without so much capital sunk into a location.
             II. Strategic Issues.
             Kentucky Fried Chicken must achieve a strategy that will be effective in Latin America so that they may be able to penetrate the market and continue to expand their market share in America and beyond.
             III. Analysis.
             The future of the fast food industry lies in the hands of the alliances that target specific issues such as product development and prime location. Due to scarcity and inflated prices of real estate it was in KFC"S best interest to invest in nontraditional venues such as cafeterias, supermarkets, and shopping malls. Another concept was to operate multi-branded restaurants that combined "2-in-1" and sometimes "3-1" of the Tricon greats, Taco Bell, Pizza Hut, and KFC. This allowed for capitalization of many companies simultaneously without consuming expensive real estate. .
             It also became necessary to revisit the concept of franchising instead of company owned stores.


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